Canadians Are Buying Arizona Real Estate Due To 3 meaningful Trends
As the US housing market looks to get back on its feet, a growing number of foreign investors have been profiting from the depressed home prices in hard hit areas. One such area is Phoenix, Arizona. Recent numbers show that Canadians have surpassed Californians as the top foreign purchaser of Arizona real estate. To understand this growing trend, it is important to look at why the market is so attractive for Canadian investment and what types of investments are being purchased
There are three meaningful trends happening right now making investment by Canadians in Arizona market so attractive. None of these are going to be around forever, so time is of the essence in the current market. These trends are popular housing prices, landlord laws, and a desirable location. All of these trends currently exist for Canadian investment in Arizona.
The first trend making investment in Arizona real estate attractive is the popular housing prices. With home prices decreasing, in some areas, by more than 50%, over the past 4 years it has allowed foreign investors to pick up investments that will provide a much higher rate of return than other areas in the states. Because Arizona was one of the 3 most hard hit states, prices there have suffered to a staggering degree. Canadian investors sitting on cash can pick up 2 or 3 similarities now for the same price as one character in Canada. And, once rented, these similarities are throwing off triple the cash that can be made in other parts of the US.
For example, the average home price in Calgary, Alberta is about 300k. When you contrast that with the fact that currently small investment homes in Phoenix are selling for 50k and rents for each home would be 750 – 900 dollars per month, the return on investment is important higher. In some situations upwards of 20% higher! You simply can not get that when you shell out 300k for one rental character. You would be lucky to get 4% ROI.
The second item helping to excursion Canadians to Arizona is the legal system as it relates to rentals. Arizona is prized by Canadians for its landlord friendly laws. In Arizona, unlike other parts of the US and Canada, should an investor find himself in a difficult situation with a tenant who refuses to pay rent or vacate the character he can use the legal system to evict. And while this is true of many areas, in Arizona the time of action only takes a few weeks. In other parts of the US and Canada, it can take months during which time the investor is not receiving rent.
For Canadians, who usually own these similarities remotely, its a tremendous assistance for them to know that they have the ability to rid themselves of problem tenants by the use of good character managers and the law while never having to leave Canada to manager things like this in person.
And finally, the third aspect, and a trend that is doubtful to change, is simply that Arizona is such a desirable area for as a hobby activities like hiking, biking, and golf. clearly, during the winter months, most of Canada is a frozen substantial. With Arizona weather, especially in winter, being so fantastic, many Canadians search for a reprieve from the cold and unlike other parts of the US, most airlines offer direct flights to the Arizona area comparatively inexpensively, leaving for the Arizona area just makes for an easy and fun get away.
All these items taken together comprise just a few of the dominant reasons Arizona has found its way into the minds of Canadians.